Baltic, EU – Baltic States, Markets and Companies, Retail

Stockmann told Nasdaq that it considers soliciting consents from the holders of its outstanding 85 mln euro 7.750% capital securities to approve certain amendments to the terms and conditions of the capital securities and expects to commence the consent solicitation by way of a written procedure upon or shortly after the publishing of its interim report, which is scheduled to be published on Oct. 30, 2019.

On Aug. 9, 2019, Stockmann announced that it is investigating strategic alternatives for the ownership of Lindex. In order to provide sufficient time for that process to complete and to enable in connection with or following such potential completion a more comprehensive refinancing of the indebtedness of the group, if such refinancing is then desirable, Stockmann considers requesting the holders' consent to postpone by 18 months the first reset date as of which the interest rate applicable to the capital securities would otherwise be increased effectively by approximately 4.7% and to agree to insert a new clause to give Stockmann the option to redeem the capital securities upon the occurrence of potential divestment of Lindex.

The consolidated revenue of the Finnish department store operator Stockmann for the first half-year declined 5.5% to 449.5 mln euros, while the 2.7-million-euro operating profit turned into an operating loss of 11.2 mln euros.

The group's revenue in the Baltics declined 7.3% on year to 39.2 mln euros in the first half of 2019 and 7% to 21.5 mln euros in the second quarter. The decline is partly attributable to the renovation of Stockmann Delicatessen in Tallinn.

As the next step, the group will position itself for growth in the Baltics, both in the fashion and grocery businesses.